Ohio Sales / Use Tax: Who controls your trash? Critical contractual distinction determines tax exemption for waste haulers, creating potential refund opportunities.

The Ohio Supreme Court recently ruled that a waste-hauler was entitled to Ohio’s transportation-for-hire exemption from sales / use tax on trucks used to haul trash to customer-designated locations. In N.A.T. Transportation, Inc. v. McClain, the Court determined the waste had not been abandoned, distinguishing from a previous case, since these customers controlled the destination... Read More

Out-of-State Remote Workers may Create Substantial Nexus as COVID-19 Protections Expire

In response to the COVID-19 pandemic, as work-from-home became the norm, many states provided safe harbors such that remote workers teleworking in the state would not create nexus for corporate income tax and sales / use tax purposes. Thus, businesses with teleworking employees were not burdened with additional state tax obligations during the pandemic. Now... Read More

Challenge to Ohio’s COVID-19 Remote Worker Withholding Statute Dismissed

In the fall 2020, Ohio passed a law giving employers flexibility to withhold income taxes as if employees were still working at the office, even if they were working remotely in a different municipality due to COVID-19. See H.B. 197. It essentially provided administrative relief to employers because they are not required to withhold tax... Read More

Ohio commercial activity tax – NASCAR hits Roadblock as broadcast and media revenue sitused to Ohio based upon viewership data

For Ohio commercial activity tax (CAT), gross receipts from certain intellectual property, such as trademarks, trade names, patents and copyrights, are sitused to the location where the purchaser uses or has the right to use the property. R.C. 5751.033(F). NASCAR’s revenue from the broadcast of its races “encompassed territory both inside and outside of Ohio.”... Read More

Significant Real Property Tax Savings Available for Property Owners Affected by COVID-19

Yesterday, Governor DeWine signed S.B. 57 into law, which allows property owners to reduce their 2020 property tax bills by filing a special “COVID-19 Complaint” with the county due by August 25, 2021. Complaints may be filed beginning July 26, 2021. Additionally, the statutory restriction for filing only one complaint in a 3-year valuation period... Read More

SALT Cap Workaround – Ohio provides PTE investors who elect workaround with income tax benefit.

Individuals are limited to deducting $10,000 ($5,000 for married filing separate) of state and local taxes (SALT) on their Federal income tax. Generally, income earned by pass-through entities (PTE) is taxed at the investor level, meaning business owners lose a valuable Federal income tax deduction for state taxes paid on income earned by businesses they... Read More

Ohio Domicile: Taxpayer could have prevailed with simple affidavit

In a recent Board of Tax Appeals Case, taxpayers contested the Department’s assessment of personal income taxes for 2014-16, asserting that they were not Ohio residents. See Anthony R. Joy & Robin E. Miller, (et. Al.), v. Jeffrey A. Mcclain, Ohio BTA Case No. 2020-239. However, the taxpayers made two critical mistakes that ultimately resulted in... Read More

Ohio CAT – Ohio Supreme Court holds sale of intangible contract rights sitused outside Ohio

Ohio Commercial Activity Tax – Ohio Supreme Court applies market-based sourcing and grants taxpayer refund by situsing intangible revenue to purchaser’s physical locations.  Situsing gross receipts often becomes a contentious issue in Ohio Commercial Activity Tax (CAT) audits partially due to the lack of guidance applying Ohio’s market-based sourcing statute. The Ohio Supreme Court has... Read More

OSBA Sales & Use Tax Subcommittee Report Highlights Recent Cases

Click here to view the Sales & Use Tax Subcommittee Report that Steve and Rich presented to the Ohio State Bar Association’s Taxation Law Committee on September 24, 2020. The OSBA Sales/Use Tax Subcommittee Report discusses recent developments concerning the scope of taxable services, as well as the federal preemption of taxation on internet services which... Read More